21 July 2009
An individual having a small business of steel Almirah.His annual income is below exemption limit.Is it necessary for him to maintain books of accounts .plz explain.If he is not maintaining then how his income tax will be calculated and return will be filed. What is necessary for proprietor to have to make books of account.Is it sales tax number?
21 July 2009
he is not required to file return as his income is below the taxable limits.
And as far as maintaining books is concerned ,read Section 44AA :-
44AA. (1) Every person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession as is notified2 by the Board in the Official Gazette shall keep and maintain such books of account and other documents as may enable the 3[Assessing] Officer to compute his total income in accordance with the provisions of this Act.
(2) Every person carrying on business or profession [not being a profession referred to in sub-section (1)] shall,
(i) if his income from business or profession exceeds 4[one lakh twenty] thousand rupees or his total sales, turnover or gross receipts, as the case may be, in business or profession exceed or exceeds 5[ten lakh] rupees in any one of the three years immediately preceding the previous year; or
(ii) where the business or profession is newly set up in any previous year, if his income from business or profession is likely to exceed 6[one lakh twenty] thousand rupees or his total sales, turnover or gross receipts, as the case may be, in business or profession are or is likely to exceed 7[ten lakh] rupees, 8[during such previous year; or
(iii) where the profits and gains from the business are deemed to be the profits and gains of the assessee under section 44AD or section 44AE or section 44AF 9[or section 44BB or section 44BBB], as the case may be, and the assessee has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, during such previous year,]
keep and maintain such books of account and other documents as may enable the 10[Assessing] Officer to compute his total income in accordance with the provisions of this Act.
22 July 2009
If the annual sales of your business for the year exceeds the maximum amt allowed by your State sales tax office, then u will have to register n get a sales tax number
25 July 2009
Dear sir Can u tell me what is maximum amt of annual sales after which one have to register n get sales tax number. If the sales does not exceed maximum amount ,then will I have to give sales tax in each sales in almirah business.
CAclubindia
